Bitcoin Mirrors 2021 Election Trends: Could Trump’s Inauguration Trigger a Surge?
- Trump’s expected pro-crypto policies could serve as a major catalyst for Bitcoin’s next leg up.
- Analysts highlight $95,900 and $97,500 as key resistance levels before a push to $100K.
- Altcoins show mixed performance, with XRP surging 7.30% amid continued investor optimism.
Bitcoin’s price movements leading up to the 2025 U.S. presidential inauguration appear to reflect patterns observed during the 2021 election cycle, according to analyst Lark Davis.
In a recent analysis, Davis identified three distinct phases that Bitcoin followed during the last presidential transition, suggesting that the current market trajectory may align with historical trends.
Bitcoin is repeating similar price action as the last presidential election and inauguration.
While history may not repeat itself, it often rhymes. pic.twitter.com/lmNyoKB3uH
— Lark Davis (@TheCryptoLark) January 14, 2025
Bitcoin’s first phase began in November and December 2024, when a strong rally pushed prices to a peak of $108,000. Following this high, the market entered a corrective phase, often referred to as the “pre-inauguration dump,” as investors reacted to political uncertainty.
Currently, Bitcoin remains in this phase, with market participants closely watching for signs of a recovery.
Trump’s Crypto Policies Could Spark a Post-Inauguration Rally
If history “rhymes,” as Davis suggests, the market may be on the verge of a post-inauguration price surge, similar to the Bitcoin rally that followed the 2021 election. ETHNews analysts point to Trump’s expected pro-crypto policies , which could serve as a major catalyst for price appreciation.
Trump has pledged to reshape the regulatory for crypto assets, contrasting with Biden’s cautious stance.
Additionally, reports suggest that the new administration may explore a strategic Bitcoin stockpile as part of a broader economic plan. This shift in policy could fuel renewed investor optimism, driving Bitcoin to fresh highs.
Key Technical Levels to Watch
Crypto analyst Doctor Profit has highlighted critical price levels for Bitcoin’s next move. He emphasizes that a daily close above $95,900 is essential to sustain bullish momentum, while breaking above $97,500 could open the door for a push toward the $100,000 mark.
Bitcoin following the exact expectations I shared with you yesterday. Gave you the circle, now we moving in it. Now I want to see the daily close above $95,900 region and a breakout above $97,500 to continue to 100k. I hope you listened when I longed at 89,90 and 92k! pic.twitter.com/BwfgI3xx6O
— Doctor Profit 🇨🇭 (@DrProfitCrypto) January 14, 2025
Despite ongoing macroeconomic concerns , Bitcoin has maintained stability, rising 0.27% in the past 24 hours to $96,565, with a market cap of $1.91 trillion. Meanwhile, open interest in Bitcoin futures remains high, underscoring the risks of excessive leverage in the derivatives market.
Altcoins Show Mixed Performance Amid Bitcoin’s Stability
While Bitcoin remains the market anchor, altcoins have experienced mixed trends. Ethereum has posted a marginal gain, holding at $3,189, while Solana saw a slight 0.24% dip, trading at $186.20.
In contrast, XRP surged by 7.30%, reaching $2.75, signaling strong investor interest despite broader market fluctuations.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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